Russia’s large pipe mills seen operating at 36% capacity in 2014

Dec 13, 2013 | 10:25 AM |

Tags  Russian pipe, large-diameter pipe, Gazprom, Oleg Kalinskiy, Russian Pipe Industry Development Fund, Chelyabinsk Pipe Rolling Plant, ChelPipe, United Metallurgical OMK

MOSCOW — Russia’s large-diameter pipe producers will likely keep capacity utilization rates low in 2014 after project tenders expected from state-run gas company JSC Gazprom failed to materialize.

The facilities are expected to operate at capacity utilization rates of 36 percent next year, up from 32 percent in 2013, Oleg Kalinskiy, head of the Russian Pipe Industry Development Fund, said Dec. 10.

Russian pipemakers, including JSC Chelyabinsk Pipe Rolling Plant (ChelPipe), United Metallurgical Co. (OMK) and OAO Severstal, this year have felt the effects of weak demand from Gazprom, the chief consumer of large pipes in the country, as the gas exporting giant completed old projects but has yet to start any major new ones.....





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